Acquisitive software provider looks ahead to ‘exciting year’ as revenues rise 31%
Software provider PROACTIS has reported a 31% rise in revenue as its chairman said that further acquisitions remain a “fundamental part” of the group’s growth strategy.
The Wetherby-based AIM-listed spend control software provider, which acquired Perfect Commerce Group in August which it says positions the company as the sixth largest global ePurchasing pure-player by revenue, reported revenue of £25.4m for the year to the end of July, up from £19.4m in 2016.
A strategic acquisition of Millstream Associates was also completed in November 2016.
The company’s order book increased by 7% to £28m while adjusted EBITDA rose 49% to £7.9m.
PROACTIS reported a statutory operating loss of £2.6m compared to a profit of £1.9m the year before due to non-recurring administrative expenses related to the acquisitions.
Chairman Alan Aubrey said: “The strong trading and financial performance has set a positive tone for what is set to be an exciting year ahead following the group’s transformational acquisition of Perfect Commerce post period end.
“Commercial progress was at normalised levels during the year with a strong performance in terms of new names, upselling and customer retention and future performance underpinned with high levels of forward visibility through recurring contracted income.
“There was a substantial improvement in the rate of profitability, both organically and as a result of the inclusion of the higher margin Millstream business. The acquisition of Millstream was the fifth acquisition in a three-year timeframe and, given the encouraging post-acquisition performance, the group has, once again, demonstrated its ability to implement optimal integration strategies.
“The group is now engaged heavily in the integration process with Perfect as it looks to realise the synergistic benefits of the acquisition, with its track record holding the group in good stead. The board is encouraged by the early stage progress it has achieved and also by trading in the first months within the group, which has been in line with its expectations.
“We are also pleased to welcome Hamp Wall to the business as chief executive officer and are confident in his ability to lead the business forward at this exciting time in order to help the group realise its growth strategy.
“The group is well positioned for the coming year and the board looks forward to driving further value for its shareholders.”
